What You Should Know About Canadian Tax Amnesty?

CRA tax amnesty, also known as Voluntary Disclosure Program or VDP, is when the Canadian government allows a taxpayer to fix a mistake on a previous return or declare income that they had previously left off of their return. The purpose of CRA tax amnesty is to provide the taxpayer with an opportunity to amend a mistake and create a plan to pay a defined amount without fear of criminal prosecution. It is a win-win situation for both the Canadian government and the taxpayer.


Who is Eligible for Tax Amnesty?

There are four main reasons that someone is eligible for CRA tax amnesty. If you have mistakenly declared too many expenses, reduced the amount that you owed by too much, forgot to declare some of your income, or are behind on filing your taxes with the Canadian government then CRA tax amnesty may be right for you. This is a program that helps taxpayers who have made mistakes avoid any potential prosecution for tax evasion or sizeable penalties so it can be beneficial. Visit us in the Toronto, York, or Durham regions or call us if you are elsewhere to determine whether or not you are eligible.


How to Apply for CRA Tax Amnesty?

The Voluntary Disclosure Program or VDP administers CRA tax amnesty through an application process. The tax that is being declared must be at least a year old and is subject to penalty. The application must also be voluntary and complete which means that the CRA has not been in touch with you about previous tax issues and the application must amend all potential mistakes. This is one of the reasons that utilizing a professional tax organization is vitally important when considering tax amnesty in Canada. If done incorrectly, it is possible for the government to consider it tax evasion.


How Does the Process Work?

The process for CRA tax amnesty is essentially a four step one. First, a letter must be sent to the CRA with all the relevant information including the tax year, necessary disclosures, type of tax references. Next, the initial application will be reviewed by the CRA and accepted. The third step is to submit complete information within 90 days of receiving acknowledgement letter. Finally, the CRA will provide confirmation that the CRA tax amnesty has been accepted.


Contact Tax 911 Now!

If you believe that you are a candidate for CRA tax amnesty or have any other questions about taxes then call us at 1-877-918-2991 or stop by for a visit if you live in the Toronto, York, or Durham regions. We look forward to hearing from you soon to help address all your tax questions and effectively ease your concerns. Our dedication to customer service and close attention to detail makes us the ideal one-stop-shop for all tax problems. Visit us at: 129 Telson Road, Suite # 100, Markham, Ontario, L3R 1E4.

Our tax services are also offered in the following regions:

  • Vancouver
  • Calgary
  • Markham
  • Winnipeg